Lift in Orchard Gate Returns predicted

The team at Just Avocados Ltd has completed a record season, marked by a number of significant milestones.

The specialist avocado company exported just more than 700,000 trays, enjoying an increased 15 per cent share of industry crop in what has been a record season of close to 4.8 million export trays.

Just Avocados managing director Andrew Darling in the company’s Katikati packhouse on Woodlands Rd.

While there is much more work to do in completing the reconciliation of export sales and finalisation of the pool across March, indications are that Orchard Gate Returns will be significantly higher than pre-season forecast.

“We are looking at a very positive outcome for Just Avocados’ growers on the back of a substantial increase in our share of the Australian retail chain space and a change in how Asian market programmes were tackled following the decision to exit AVANZA early last year,” says Just Avocados managing director Andrew Darling.

With a bumper four million trays forecast for Australia this 2016-2017 season, careful attention to the fruit’s movement through the Australian supply chain and distribution system has been paramount.

In-market team

“There is no doubt that Just Avocados’ result has been enhanced by having our people on the ground in-market in Australia by way of our businesses Global Fresh Australia and JH Leavy & Co., our inventory and pricing has been managed by our team with great discipline.”

In Asia, Just Avocados’ Mr Avocado brand was rolled out for the first time and enjoyed by customers in Japan, Korea and Thailand. Just Avocados also undertook collaborative activity with Freshmax to jointly serve customers in Taiwan, Singapore and Malaysia.

“The eventual market split for the pool will end up about 86 per cent to Australia and 14 per cent to rest of world markets, compared to an industry mix of about 84 per cent to Australia and 16 per cent to rest of world.”

Collaborative consultation

The 2016-2017 season has delivered its challenges for the industry with fruit quality issues needing close attention.

“Fortunately, with some prompt collaborative consultation on causes and tactics to mitigate the quality risk, as an industry we came through without too much impact.

“For Just Avocados, the issues experienced in the industry did highlight the benefit of having recently employed an avocado specialist technical resource in Erica Faber, who joined the company in January,” says Andrew.

While Erica’s role and focus as orchard productivity manager is on supporting Just Avocados’ growers to lift productivity and crop more consistently, she will be a vital asset in helping manage future quality risks.

Along with increasing the capability of the team, Just Avocados has undertaken a number of significant strategic investments in 2016 such as the purchase of Brisbane-based produce marketing and logistics company JH Leavy & Co. And an upgrade of the site at Woodland Road in Katikati to include ripening and distribution services.

“Just Avocados has all the bases covered and is in a strong position to deliver greater value to growers and customers.

“There will be challenges for the industry in the upcoming lower volume season, however we are confident in the capability of Just Avocados’ fully-integrated service model,” says Andrew.


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